“I’m just saying that if you understand how the economic machine works, it just works like a machine. These are cause-effect relationships.” -Ray Dalio-

Created by Ray Dalio, this simple, but not simplistic, video is easy to understand. More importantly, it answers a question  many of us have wrestled with for years, “How does the economy really work?” This 30-minute, animated illustration offers incredible insight into what is behind the proverbial curtain – a machine that always produces results, sometimes favorable, sometimes not so favorable.

Based on Dalio’s practical template for understanding the economy, which he developed over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies works, and why economic cycles occur.

Enjoy!

Ray Dalio is the founder of Bridgewater Associates, one of the world’s largest hedge-funds.